Innovations in transportation don't come often, so when Archer Aviation (ACHR -2.89%) states that its mission is "to unlock the skies, freeing everyone to reimagine how they move and spend time," investors want to know if this is a pie in the sky notion or if Archer Aviation is for real.
But it clearly appears to be the latter. In its plight to disrupt urban transportation, Archer Aviation has hit the target in a variety of ways, suggesting that -- while it's not exactly open for business yet -- the company is on the right path.
Getting ready for liftoff
Founded in 2020, Archer has made great strides over the past few years toward its goal of transporting passengers in electric vertical take off and landing (eVTOL) aircraft. In 2021, Archer inked a manufacturing agreement with automaker Stellantis. The two companies are developing a manufacturing facility in Georgia this year, which has an annual production capacity of 650 aircraft and is expected to commence production in 2025.
Another partner helping Archer to attain its goal is United Airlines, which has placed up to $1 billion in conditional orders with Archer for its aircraft. The two companies also plan on launching Archer's electric air taxi service in several of United's hubs: New York City, Los Angeles, Houston, Chicago, and San Francisco.
Besides forming strategic partnerships, Archer has achieved several milestones in pursuit of FAA certification of its Midnight aircraft, and management believes it's on track to meet its goal of performing 400 test flights in 2024.
There may still be turbulence ahead
There's no denying that Archer is making real progress toward making its presence felt in the wild blue yonder. Consequently, investors should certainly recognize that Archer is for real. The company has received orders for up to 700 aircraft, representing about $3.5 billion.
Investors should note, though, that despite the company's progress toward launching commercial operations, owning Archer stock still involves some risks, which range from completing its manufacturing facility to securing FAA certification for its aircraft.
